Eraring Power Station’s Temporary Reprieve: Extension to 2027 Amid Energy Transition

Eraring Power Station, Australia’s largest coal-fired power generator, has secured a two-year extension, pushing its closure date to 2027. Originally set to close in 2025, the New South Wales government offered this reprieve due to concerns that renewable energy projects and storage solutions weren’t progressing fast enough to replace the station’s contribution to the energy grid.

Shannon Logue, a production coordinator at Eraring with over 35 years of experience, shared his reaction to the unexpected extension. “I love this place,” Logue said. “I’ve worked in power stations across the country, but this is by far the best. I work with the best people.” Logue had initially planned to start a lawn and property maintenance business when the plant closed in mid-2025, but now those plans are on hold. Like many of his colleagues, he’s content to keep working as the station continues operations for at least two more years.

The extension comes after Origin Energy, Eraring’s operator, announced in 2022 that it would bring forward the station’s closure by seven years due to rising costs and declining profits. However, the energy transition has not moved fast enough to replace the 2,880-megawatt plant’s output, which continues to meet around 22% to 28% of the state’s electricity needs. This contribution became even more critical following the shutdown of the Liddell power station in 2023.

Adjusting Operations and Maintenance

Eraring’s role in the National Energy Market has changed dramatically in recent years. As renewable energy sources like solar continue to expand, the station’s four units now reduce output during the day when demand is lower. Production is ramped up during periods of lower renewable output, particularly in the early morning and evening.

The station is undergoing significant maintenance work to ensure its continued operation until 2027. A $70-$80 million overhaul is currently being conducted on Unit 3, involving up to 800 contractors. The work is extensive, with engineers and divers inspecting key components of the plant’s heating and cooling systems to ensure reliability.

Mitch Youngberry, overseeing the overhaul, emphasised the scale of the operation: “It’s a rigorous maintenance program. We’re looking at key safety and reliability areas, as well as improvements in efficiency. This ensures we can meet the increasing demands placed on the plant as we run it harder than before.”

Preparing for the Future: Battery Storage and Renewable Energy

While coal-fired operations continue, the future of Eraring is also taking shape in the form of large-scale battery storage projects. Origin Energy has already begun constructing a multi-stage battery system on-site. The first stage is expected to be operational by late 2025, and the second stage will follow, adding significant capacity to store renewable energy.

Jay Foggin, Origin’s head of energy storage projects, noted that the second stage of the battery project will add 240 megawatts with four-hour duration, allowing more flexibility to support grid stability. The full project, once completed, will provide over two gigawatts of energy storage. Foggin highlighted the importance of frequency control services that the batteries will provide as the nation transitions to renewable energy sources.

Despite these advancements, the number of long-term jobs created by the battery system will be limited. Only a handful of operational roles will remain once the battery project is complete, compared to the hundreds of jobs currently sustained by the coal plant.

Uncertain Outlook for Workers

Eraring’s workforce, numbering around 400 employees and contractors, remains in a state of uncertainty about their long-term future. Many, like Logue, have started planning their post-Eraring careers. Origin Energy’s “Future Directions” program has been assisting workers in developing personalised plans for life after the plant’s eventual closure.

Bianca Lowe, Origin’s general manager of people and transition, explained that many workers are keen to stay in the local area despite the limited energy-related job opportunities. “We’ve found through conversations that a lot of people have built their lives around this region. They are committed to staying, so we’re working on creative ways to ensure they remain employable within the community,” Lowe said.

As the NSW government aims for a full closure of Eraring by 2029, workers are weighing their options. Andrew Gough, a fitter and machinist who started his apprenticeship at Eraring, expressed optimism about future opportunities. “I always knew I’d work somewhere else eventually,” Gough said. With the help of Origin’s support programs, he’s now pursuing further education to transition into a management role in another sector.

The continued operation of Eraring is crucial for the state’s energy stability, but the future of its workforce and the Lower Hunter’s economic reliance on the plant remains uncertain as the nation moves towards renewable energy.